1. Australia’s experience with digital television transition Chris Cheah Authority Member, Australian Communications and Media Authority

2. Overview  Australia’s television and regulatory environment  A brief history  Current Tasks and Challenges  Thinking about the future

3. Australia’s television environment – some base demographics Population22 million Households 8.5 million.. with FTA TV8.4 million.. % Digital82%.. % with Pay TV28%

4. Australia’s television environment – providers >Two publicly funded (‘national’) broadcasters : ABC, SBS >Three national commercial television networks : 7, 9 and Ten >Mainly syndicated via regional providers, underpinned by “aggregation” policy dating from the 1980s >69 commercial licences in total >Currently offering 5 analog but 15 digital channels >2 large subscription television providers : Foxtel and AUSTAR – in merger talks >Indigenous broadcast television provider (Imparja) in parts of remote Australia >81 Community (mainly very local) television licences >Some smaller subscription and “narrowcast” servicers

5. Australia’s television environment – regulatory players Content Carriage Australian Competition and Consumer Commission (ACCC) INDUSTRY BODIES WITH CO-REGULATORY FUNCTIONS Telecommunications Industry Ombudsman (TIO) Communications Alliance MINISTER FOR BROADBAND, COMMUNICATIONS AND THE DIGITAL ECONOMY Senator the Hon Stephen Conroy POLICY ADVICE Department of Broadband, Communications & the Digital Economy Australian Communications and Media Authority (ACMA) OPERATORS USERS Free TV Australia (Commercial Television Industry Body) Commercial Radio Australia (CRA) Internet Industry Association (IIA) National Broadcasters Commercial Broadcasters Community Broadcasters Subscription Broadcasters Narrowcasters Carriers Telephone Service Providers Internet Service Providers Broadcast Transmission Providers Industry User GroupsConsumer Groups GOVERNMENT REGULATORS NET ALERT (Government owned Internet Community Advisory Body) Australian Subscription TV and Radio Association (ASTRA) INDUSTRY BODIES WITH CO-REGULATORY FUNCTIONS Community Broadcasting Association of Australia (CBAA)

6. ACMA’s main broadcasting functions  Spectrum regulator – including planning of broadcasting spectrum  Allocation, renewal, suspension and cancellation of broadcasting licences and the collection of licence fees  Oversight of ownership and control rules, including public registers  Oversee content rules in legislation, licence conditions and industry codes of practice  Establishing program standards (Australian content, children, advertising)  Investigations of complaints  Advice to Government

7. A brief history of digital television transition Two main waves of government decisions >Wave 1 : Late 1990s to 2002 >Wave 2 : ~2007 to now Also some important parallel activities about the convergent and broadband future.

8. Government decisions wave 1 – Late 1990s-2002 >Introduction of digital television as an addition to analog – via a long introductory period (minimum 8 years) >Commencement in metro areas 1 January 2001, Regional areas by 2004 >~$250 million to assist national and regional broadcasters invest in infrastructure and major planning exercise >clear aim of releasing spectrum at some point for a digital dividend >7 MHz channels >ostensibly to support HDTV options (hence an HDTV quota) >but capable of supporting more SD multi-channelling, albeit delayed >Use of DVB-T technology >Principle of “same coverage” >Datacasting channel (defunct)

9. Government decisions wave 2 – From 2007 to now >Locked in a serious switch off date (31 December 2013) >Related decisions about how digital dividend >Set a staged national switchover plan >Government funded education campaign, including tools to assist viewers >Government funded household assistance scheme (HAS) to subsidise equipment to particular vulnerable viewers >Government funded satellite transmission scheme (VAST) to provide a safety net of national coverage >including satellite equipment subsidy scheme >Planning principle of “restacking” to yield digital dividend spectrum >Government funded research to monitor digital takeup area-by- area, and the digital tracker

10. The switchover timetable KEY http://agencysearch.australia.gov.au/search/search.cgi?query=radiofrequency+allocations+chart&collection=agencies&form=simple&profile=acma First Half 2010 Second Half 2010 First Half 2011 Second Half 2011 First Half 2013 Second Half 2013 First Half 2012 Second Half 2012 Satellite

11. http://www.digitalready.gov.au/Home.aspx http://www.digitalready.gov.au

12. KEY Digital channelsAnalog channels Current Analog & Digital channels during simulcast Newcastle, Sydney, Illawarra 45-52 MHz 85-108 MHz 137-144 MHz 526-582 MHz 582-820 MHz56-70 MHz174-230 MHz

13. 6 channel block Newcastle, Sydney, Illawarra KEY DAB + 45-52 MHz 85-108 MHz 137-144 MHz 526-582 MHz 582-820 MHz56-70 MHz174-230 MHz Digital Channels

14. Start 2010 Mid 2012 End 2014 Mid 2013 End 2013 200920102011201220132014 Analog switch off Broadcasters relocate to new digital TV channels Restack legislative amendments Digital TV restack planning Restack completed Spectrum Auction Minister’s media release Discussion Paper Ministerial Direction Recom’ to Minister Allocation Instruments Ministerial Declaration Issue Licences Technical Framework Digital Dividend Green Paper KEY ACMA Broadcasters Minister DBCDE Broadcasters start to plan infrastructure & new equipment Yielding the Digital Dividend: The Restack and Reallocation Processes Spectrum available for use

15. Some success factors?  Certainty : timetables, technology  Linkages between outcomes : digital switchover and digital dividend  Well thought out incentives  Real benefits : Digital clearly better than analog (more channels, better quality picture)  Good communication, about benefits and consequences  Addressing sources of criticism, but with an eye to the future

16. Some parallel regulatory developments >Changing ownership and control regulation >Multichannelling policy >Classification, parental locks and EPGs >The outer boundaries of “narrowcasting” >Sports rights and the anti-siphoning list >What to do about mobile television? >“Datacasting” policy

17. Thinking about the future of “television” – issues >Evolving standards : MPEG4 and all that >Evolving capabilities : 3D, increasing HD, interactivity >Other content services, and substitutes >IPTV, VOD, and broadband >Damaged concepts : What is a “television” “program”? >Relentless spectrum demand >Mobile data, refarming, “whitespace” >Where to with the “quid pro quo” ? >Role of traditional broadcasting objectives : quality, choice, Australian content, localism, ownership and influence, community standards, captioning, children

19. Thinking about the future of television – current processes >During 2011 three content-related reviews : a Convergence Review; a media inquiry; and a review of classification arrangements >2009 Government decision to fund a National Broadband Network – a paradigm shift in play >ACMA discussion starter on the future of television following switchover >ACMA and other research www.acma.gov.auwww.acma.gov.au